Business Types and Acceptable Investments for the E-2 Visa

By Asim Kilinc, Immigration Attorney at CK Law Firm

The E-2 visa grants immigration status to individuals who wish to invest and start a business in the U.S. However, to benefit from this visa, the investment must meet certain criteria, and the type of business must fall within acceptable categories. In this article, we will delve into the types of businesses eligible for the E-2 visa and the characteristics of acceptable investments:

• Types of Businesses Eligible for the E-2 Visa
• Characteristics of Acceptable Investments
• Key Considerations During the E-2 Visa Investment Process

If you have additional questions about the E-2 visa, feel free to contact me via the comments section below, directly on LinkedIn, or through the CK Law Firm Immigration Attorneys’ website.

Types of Businesses Eligible for the E-2 Visa

While the type of business is important, the most critical requirement is that the business engages in “active” commercial activities. Passive investments do not qualify under this visa category.

Active Businesses
The business must actively produce goods or services. Examples include:

• Restaurants, cafes, or hotels.
• Retail stores or e-commerce platforms.
• Technology startups or consulting firms.

Small and Medium-Sized Businesses
The E-2 visa is generally suitable for small and medium-sized businesses. Companies with the potential to contribute to the U.S. economy hold an advantage in the visa process.

Franchise Businesses
Franchise models are a popular option for E-2 visa applicants. These businesses offer a pre-established operational model and support system, making them appealing for both investors and the U.S. government.

Service- or Manufacturing-Based Businesses
Businesses in the service sector (e.g., consulting, accounting) or manufacturing companies are eligible for the E-2 visa.

Important Considerations:
Passive investments (e.g., simply purchasing property) or businesses that generate personal income only (e.g., individual real estate management) are not considered eligible for the E-2 visa.

Characteristics of Acceptable Investments

Investments made for the E-2 visa must meet specific standards. Acceptable investments have the following characteristics:

Substantial Investment Amount
The amount of investment depends on the type and scale of the business, but it must be “substantial.” A substantial investment means an amount sufficient to ensure the successful operation of the business.

• For small businesses, an investment between $100,000 and $150,000 is typically considered sufficient.
• Larger businesses may require a higher investment amount.

At-Risk Capital
The investment must demonstrate that the investor is taking a financial risk. This means that the investment’s entirety or a significant portion should be allocated to the establishment and operation of the business. Examples include:

• Purchasing equipment, products, and materials for the business.
• Leasing or purchasing business premises.
• Covering employee salaries and marketing expenses.

Avoidance of Speculative or Passive Investments
Only profit-oriented and actively managed businesses are eligible for the E-2 visa. For example, purchasing a property solely for rental purposes is considered speculative and will not qualify.

Contribution to the U.S. Economy
The business must have the potential to contribute to the U.S. economy, such as creating jobs or providing economic benefits to the local community.

Key Considerations During the E-2 Visa Investment Process

When making an investment for the E-2 visa, the following steps are crucial:

Preparation of a Business Plan
A detailed business plan outlining the financial projections, objectives, and operational plans of the business is mandatory. The business plan will be used to demonstrate that the investment is legitimate and beneficial to the U.S. economy.

Document Preparation
The source of the investment and its legality must be documented with supporting evidence. CK Law Firm provides comprehensive legal assistance to ensure your investment complies with the requirements.

Completion of the Investment
The investment must be completed before the E-2 visa application. All expenditures during the business establishment process should be meticulously documented.

Seeking Professional Guidance
Professional advice on selecting the business type and navigating the investment process is essential for a smooth application process.

Conclusion

The E-2 visa offers a valuable opportunity for entrepreneurs seeking to establish a business and invest in the U.S. However, selecting an appropriate business type and making an acceptable investment are critical steps. The rejection of passive investments is an important criterion that applicants must consider.

At CK Law Firm, we provide professional consulting services to assist with determining the type of business, structuring acceptable investments, and managing the application process for the E-2 visa. For professional support, detailed information, and consultation services, contact us via cklawfirm.org, info@cklawfirm.org, or LinkedIn.

Who is Attorney Asım Kılınç?

Attorney Asım Kılınç is the co-founder of CK Law Firm and is recognized for his expertise in immigration law and U.S. asylum applications. Kılınç completed his Master’s degree at Southern Methodist University Dedman School of Law and is a member of the Missouri Bar Association, with a focus on U.S. immigration law.

Attorney Kılınç’s extensive knowledge and experience in immigration law have significantly contributed to CK Law Firm’s success in this field. He has actively participated in the preparation of over 1,000 cases, demonstrating his expertise in this area. By providing comprehensive and professional legal support to his clients, he helps them adapt to their new lives in the U.S.

Attorney Kılınç is also well-versed in U.S. asylum applications. He meticulously guides his clients through the process and ensures they receive the best legal advice. He provides top-quality service to clients in matters of citizenship, Green Card, work permits, and other immigration processes, supporting them from start to finish on their journey to U.S. citizenship.

Attorney Asım Kılınç, who solidifies CK Law Firm’s leadership in immigration law and U.S. asylum applications, offers reliable and effective legal consultancy services to clients, assisting them in building a new life in the U.S.